IRR vs. Equity Multiple - Which is More Important? [Real Estate]

IRR vs. Equity Multiple - Which is More Important? [Real Estate] // The IRR and the equity multiple both serve really important functions within a real estate investment analysis, but these also serve very different purposes when it comes to the underwriting process.
And even though these tend to be added to financial models and investment materials alongside each other, the importance of each of these can vary a lot on a deal by deal basis, depending on the strategy you’re ultimately planning to pursue.
So whether you’re an investor trying to evaluate your own opportunities, or you're working as an analyst within a bigger firm, this video will walk you through when you might want to focus on the IRR over the equity multiple (and vice versa), and why that might be the case in each of these scenarios.
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🕒 Timestamps 🕒
0:00 Introduction
0:43 What Each Measures
1:17 Factor One
3:42 Factor Two
5:30 Factor Three
#commercialrealestate #commercialrealestateinvesting
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
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[@BreakIntoCRE]

Which metrics do you focus on most when analyzing real estate deals?

[@erikgrabowski7725]

Great job explaining these two concepts!

[@BreakIntoCRE]

Glad to hear this was helpful!

[@88multiblade]

I appreciate all you do for the CRE community!

[@88multiblade]

Great video Justin!

[@Imran.Aviator]

First view

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